Agile as a Disrupter
May 2017
Terrance Knecht
MBA, SAFe SPC4, CSP, PMI-ACP, PMP, CSM, CSPO, CGEIT,
CISSP, ITIL, COBIT
ZS Associates
Los Angeles | +1 805 413 5900
PART I
(Agile is Fun)
© 2015 ZS Associates
|
CONFIDENTIAL
−2−
PMI Presentation 02
Agile as a Disrupter
 What is Agile/Scrum
 Scrum Roles and Responsibilities – The Scrum Journey
 Scrum Concepts Deep Dive
 Information Radiators
 Summary
© 2015 ZS Associates
|
CONFIDENTIAL
−3−
PMI Presentation 02
120 seconds to Scrum!
© 2015 ZS Associates
|
CONFIDENTIAL
−4−
PMI Presentation 02
Agile versus Waterfall A Philosophy Change
Waterfall
Fixed
Requirements
Agile
Resources & Time
Value
Driven
Plan
Driven
Estimated
© 2015 ZS Associates
|
CONFIDENTIAL
Resources & Time
Features
The plan creates
cost/schedule estimates
Release themes and feature
intent drive estimates
−5−
PMI Presentation 02
When to use Agile?
© 2015 ZS Associates
|
CONFIDENTIAL
−6−
PMI Presentation 02
Agile Manifesto – February 2001
•
•
•
•
© 2015 ZS Associates
|
CONFIDENTIAL
Four Values of Agile
Individuals and interactions over processes
and tools
Working software over comprehensive
documentation
Customer collaboration over contract
negotiation
Responding to change over following a plan
−7−
PMI Presentation 02
Scrum Manifesto – February 2001
Twelve Principles of Agile – Part 1
•
•
•
•
•
•
•
•
•
•
•
•
© 2015 ZS Associates
|
CONFIDENTIAL
Satisfy the customer by early delivery of valuable software
Welcome changing requirements
Deliver working software frequently
Business people and developers work together
Best is face-to-face conversation
Working software is the primary measure of progress
Sustainable development
Continuous attention to technical excellence
Attention to Technical Debt enhances agility
Simplicity
The best results from self-organizing teams
Team reflects on how to become better
−8−
PMI Presentation 02
Agile Family
 Agile is a mindset more than a single methodology which the concepts
in the Agile Manifesto
 There are several Agile methodologies including:
© 2015 ZS Associates
|
CONFIDENTIAL
−9−
PMI Presentation 02
Agile as a Disrupter
 What is Agile/Scrum
 Scrum Roles and Responsibilities – The Scrum Journey
 Scrum Concepts Deep Dive
 Information Radiators
 Summary
© 2015 ZS Associates
|
CONFIDENTIAL
− 10 −
PMI Presentation 02
Scrum Roles and Responsibilities
 Owns the Product
Budget
Stakeholders
Product Owners should have
frequent interactions with
stakeholders
 Keeps the team
moving forward
 Works on
process
improvements
with the team
 Remove
impediments
Business
Owner
Scrum
Master
Sprints
Product
Owner
Development Team
 Prioritizes the
Product Backlog
with stakeholder
input
 Responsible for
maximizing the
value of the
product
 Self Organizing
 Determines the
Product Increment
© 2015 ZS Associates
|
CONFIDENTIAL
− 11 −
PMI Presentation 02
Getting ready for a Scrum project and want to learn what your journey
looks like? Let’s look at the 5 events and 3 artifacts of Scrum
Daily
Scrum
Sprint
Retrospective
Sprint Review
Product
Backlog
Product
Vision
Sprint
1 to 4
Weeks
Sprint
Backlog
and Goal
Product
Increment
Sprint Planning
To the Next Sprint
© 2015 ZS Associates
|
CONFIDENTIAL
− 12 −
Scrum Training Presentation 03-03-2016_ms
Getting ready for a Scrum project and want to learn what your journey
looks like? Let’s look at the 5 events and 3 artifacts of Scrum
Daily
Scrum
There are 5 events…..
Sprint
Retrospective
Sprint Review
Product
Backlog
Product
Vision
Sprint
1 to 4
Weeks
Sprint
Backlog
and Goal
Product
Increment
Sprint Planning
To the Next Sprint
© 2015 ZS Associates
|
CONFIDENTIAL
− 13 −
Scrum Training Presentation 03-03-2016_ms
Getting ready for a Scrum project and want to learn what your journey
looks like? Let’s look at the 5 events and 3 artifacts of Scrum
Daily
Scrum
…and 3 artifacts.
Sprint
Retrospective
Sprint Review
Product
Backlog
Product
Vision
Sprint
1 to 4
Weeks
Sprint
Backlog
and Goal
Product
Increment
Sprint Planning
To the Next Sprint
© 2015 ZS Associates
|
CONFIDENTIAL
− 14 −
Scrum Training Presentation 03-03-2016_ms
HOURS
Sustainable
HOURS
DURATION
SPRINT 1
© 2015 ZS Associates
|
CONFIDENTIAL
SPRINT 2
− 15 −
SPRINT 3
SPRINT 4
Scrum Training Presentation 03-03-2016_ms
Agile as a Disrupter
 What is Agile/Scrum
 Scrum Roles and Responsibilities – The Scrum Journey
 Scrum Concepts Deep Dive
 Information Radiators
 Summary
© 2015 ZS Associates
|
CONFIDENTIAL
− 16 −
Scrum Training Presentation 03-03-2016_ms
Building A Scrum Project
While there are many pieces to the Scrum environment, they are all
designed to allow the Scrum team to quickly move forward by only
investing the minimum time needed to be good enough to move
forward quickly
User Stories
Estimates
Time Boxing
Sprints
Releases
Meeting Facilitation
© 2015 ZS Associates
|
CONFIDENTIAL
− 17 −
Scrum Training Presentation 03-03-2016_ms
User Story
User Story Is
 The Building Block of Agile
 A small chuck of business functionality (4 to 40 hours to accomplish)
 FORMAT: As a <type of user>, I want <some feature>, so that <reason>
 Details and Estimate will evolve through Progressive Elaboration as the User Story
progresses along the SCRUM JOURNEY
USER STORY
As a Claims Processor, I (Mary) want the ability to create
a note so that I can refresh my memory during a
subsequent call
Product Backlog of User Stories
As a user, I want to have a flat phone that can wrap
around my wrist like a watch
As a user, I want to be able to have an exterior
color that can be changed by pressing a button
© 2015 ZS Associates
|
CONFIDENTIAL
− 18 −
Stories are
decomposed
into tasks at
Sprint
Planning and
assigned to
a developer
Developer Tasks
Create flexible
phone casing
Create flexible
phone display
Program ability to
colorized exterior
PMI Presentation 02
Process for Defining User Stories
 Three C’s
o Use a Card – just enough text to convey the idea
o Have a Conversation
• Details of requirements from User Story Workshop, Release Planning,
Sprint Planning and other points along the way
• Identify “DONE” as a list of what needs to be completed to be
accepted by the user and is placed on the back of the card
o Get Confirmation – review of results for DONE – at Sprint Review
 User Story Sources – In order of occurrence
o Project Charter & SOW
o Business Owner/Sponsor
o Product Owner
o Stakeholders
o Scrum Team
o As the project evolves (progressive elaboration)
© 2015 ZS Associates
|
CONFIDENTIAL
− 19 −
Scrum Training Presentation
Guiding Principles for Developing Effort Estimates for User Stories
 Focused on reducing the time spent
estimating
 Participatory
 Needs the person who does the work
 Not perfect and will refine over time
 Progressive Elaboration as project
moves forward
© 2015 ZS Associates
|
CONFIDENTIAL
− 20 −
Scrum Training Presentation
Story Points
 Story Points are one possible unit of
measure for User Stories
o Story Points are an Abstraction
o Story Points are relative estimates
o Fibonacci Sequence (0, 1, 2, 3, 5, 8,
12, 21) – used in several estimation
systems to recognize that estimates
are inexact
o Story Points are only consistent within
a single project
© 2015 ZS Associates
|
CONFIDENTIAL
− 21 −
Scrum Training Presentation
Estimation Approaches
User Story estimates evolve into more exact amounts as the project
progresses (Progressive Elaboration). Different tools are used as more
refined estimates are needed because we are focused on reducing the
time spent on the activity
 Rough Estimates (early in project)
o Affinity Estimation
o T-Shirt Estimates
 Refined Estimates (later in project)
o Planning Poker
o Heuristic (expert knowledge based)
o Parametric (calculation based)
 Hours
o At Sprint Planning when User Stories are broken down to tasks
© 2015 ZS Associates
|
CONFIDENTIAL
− 22 −
Scrum Training Presentation
Planning Poker
Estimation Approaches
T-Shirts
Affinity
US 1
US 7
US 9
US 8
US 3
US 2
US 6
US 4
US 5
US 8
Parametric
50 items X 20 Story Points = 1000 Story Points
© 2015 ZS Associates
|
CONFIDENTIAL
− 23 −
Scrum Training Presentation
Time Boxing (and how do things fit together)
 Time Boxing brings order to the Scrum approach
 Agile believes that things will change during the course of the project
so the amount of time for an individual activity is restricted because
focused on reducing the time spent on activities
 Events (Meetings, Reviews, Retrospectives, Sprints) in Agile are Time
Boxed: they are given a set time frame in which to be accomplished
 If a User Story is not completed by the end of a Sprint, then the User
Story goes into the Product Backlog to be prioritized by the Product
Owner for the next Sprint or a later Sprint, or never…
 Save time to build value!
© 2015 ZS Associates
|
CONFIDENTIAL
− 24 −
Scrum Training Presentation
User Stories Add Up To A Sprint
Sprints (a development cycle) are set at 1 to 4 weeks. The number of
User Stories assigned to a Sprint is HOW MANY WILL FIT in the Time
Box
User
Story 4
Sprint Time Box
(Fixed Capacity)
© 2015 ZS Associates
|
CONFIDENTIAL
User
Story 1
− 25 −
User
Story 5
User
Story 2
User
Story 3
PMI Presentation 02
Sprint Types
Most Sprints deliver value to the Business Owner in the form a
completed User Stories and a Product Increment. However, there may
be specialized Sprints needed to support the project which do not deliver
value directly to the Business Owner
Sprint Type
Usage
Sprint 0
Set the stage for development
Architectural Spike
Dedicated to “proof of concept” ; explore the viability of
an approach; or “fast failure”
Risk-Based Spike
Investigate, mitigate or eliminate risk (an issue or threat
to the project)
Hardening
Prepare the Product (Increment) for the Production
Environment (wrap up)
Refactoring
Clean up code (preventive maintenance) to reduce time
needed to make additional enhancements (this function
may be part of a Value Based Sprint) – Technical Debt
© 2015 ZS Associates
|
CONFIDENTIAL
− 26 −
Scrum Training Presentation
There are a variable number of Sprints in a Release
The Release dates and the composition of a Release (what User Stories
that are in the Release) are determined by the Product Owner
PROJECT
RELEASE 1
S1
S2
S3
S4
RELEASE 2
S5
S6
S7
S8
S9
S10
S11
S11
SPRINTS
© 2015 ZS Associates
|
CONFIDENTIAL
− 27 −
PMI Presentation 02
Story Map is the Foundation of the Release Plan (Project Plan)_
Backbone
US
US
US
US
Sequence
Walking
Skeleton
Optionality
Less
optional
US
US
US
US
US
More
optional
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
US
Subsequent
releases
© 2015 ZS Associates
|
CONFIDENTIAL
− 28 −
PMI Presentation 02
Meeting Facilitation Approaches
The Agile approach is to meet face to face but reduce the length and
detail of a meeting – especially in decision making. Agile approach is
to move quickly and make decisions at the latest possible time without
jeopardizing the deliverable






Time Boxing
Standup Meeting
Talking Token
Simple Voting
Thumbs up, down, sideways
Fist of Five Voting
© 2015 ZS Associates
|
CONFIDENTIAL
− 29 −
Scrum Training Presentation
A Few Review Terms
 User Story
 Story Point
 Story Map
o Backbone – User Stories Needed to function
o Walking Skeleton – User Stories needed for MVP
 Minimal Viable Product (MVP)
 Technical Debt
 Sustainability
© 2015 ZS Associates
|
CONFIDENTIAL
− 30 −
Scrum Training Presentation
Agile as a Disrupter
 What is Agile/Scrum
 Scrum Roles and Responsibilities – The Scrum Journey
 Scrum Concepts Deep Dive
 Information Radiators
 Summary
© 2015 ZS Associates
|
CONFIDENTIAL
− 31 −
Scrum Training Presentation
Information Radiators
 “Information Radiator” is Agile’s term for highly visible displays of
information (e.g., Kanban, Burnup Chart, Burndown Chart, etc.)
 Rather than spending time on status reports, individuals are asked to
just look around!
 Someone needs a status and cannot come to the room, take a picture
and sent the picture to them!
© 2015 ZS Associates
|
CONFIDENTIAL
− 32 −
PMI Presentation 02
Kanban “Signboard”; Can Support Scrum Or Be Its Own System
 Five principles
o Visualize the workflow
o Limit WIP (work in progress)
o Manage flow
o Make process policies explicit
o Improve collaboratively
(3)
(6)
(3)
(2)
 Processes (as a system)
o Pull system
o Work In Process Limits
© 2015 ZS Associates
|
CONFIDENTIAL
− 33 −
Scrum Training Presentation
Burndown Chart
What
When
How
•
•
•
•
A Burndown Chart is a
graphical representation of
work left to do versus time
An Ideal Work Remaining
Line is a straight line from
start to finish
It is useful for predicting
when all of the work will be
completed and tracking
project progress. Updated
at Sprint completions
The outstanding work (or
backlog) is on the vertical
axis, with time or Sprints
along the horizontal axis
Burndown Chart
Work Remaining (Story Points)
3000
2500
2500
Ideal Work
Remaining Line
2100
1950
2000
Actual Work
Remaining Line
1500
1200
1000
“As of sprint 3,
project is
estimated to finish
by Sprint 6”
500
0
0
1
2
3
4
5
6
7
8
Sprints
© 2015 ZS Associates
|
CONFIDENTIAL
− 34 −
PMI Presentation 02
Velocity Chart
What
When
How
•
•
•
Velocity is a measure of a
team’s capacity for work per
Sprint
•
Measured at the end of each
Sprint
Velocity usually varies the
most in the first few Sprints
and then begins to stabilize
The completed work per
Sprint is on the vertical axis,
with time or Sprint along the
horizontal
Velocity Chart
750
Story Points
Completed per Sprint
800
700
Max Velocity = 750 Pts/SP
600
500
400
400
300
150
200
100
Min Velocity = 150 Pts/SP
0
1
© 2015 ZS Associates
|
CONFIDENTIAL
2
3
4
5
Sprints
− 35 −
6
7
8
9
PMI Presentation 02
Agile as a Disrupter
 What is Agile/Scrum
 Scrum Roles and Responsibilities – The Scrum Journey
 Scrum Concepts Deep Dive
 Information Radiators
 Summary
© 2015 ZS Associates
|
CONFIDENTIAL
− 36 −
PMI Presentation 02
Agile/Scrum Resources
 SCRUM ALLIANCE is a nonprofit membership organization that encourages and
supports the widespread adoption and effective practice of Scrum.
o https://www.scrumalliance.org
 AGILE ALLIANCE is a nonprofit organization with global membership, committed to
advancing Agile development principles and practices https://www.agilealliance.org
 SCRUM.ORG global membership, committed to advancing Agile development principles
and practices
© 2015 ZS Associates
|
CONFIDENTIAL
− 37 −
PMI Presentation 02
PART II
© 2015 ZS Associates
|
CONFIDENTIAL
− 38 −
PMI Presentation 02
Agile as a Disrupter
 Scrum of Scrums
 LeSS
 SAFe
 Planning
 Budgeting
 Auditing
 Contracts
© 2015 ZS Associates
|
CONFIDENTIAL
− 39 −
PMI Presentation 02
Raise Scrum to a Higher Level – Scrum of Scrums
 How do we use Scrum on a large project with a team
limited to nine persons?
 If we divide the team into parts then there will be
problems:
o Lack of a unified view of the product
o Redundancy of work (two teams implementing the same phase of
the scope)
o Communication failure - Integration Hell - (how to integrate different
parts of a Sprint developed by different teams)
o Dependencies between tasks of different teams lead to complex
change management
© 2015 ZS Associates
|
CONFIDENTIAL
− 40 −
PMI Presentation 02
Scrum of Scrums
 Establish independent Scrum teams: Product Owner,
Scrum Master and Development Team.
 Teams are composed of individuals, and the teams are
different - Each team has its own velocity and production
capability.
 Align releases in a time-box while allowing the teams to
have as many Sprints as needed.
 Along with each team having its own Daily Scrum, there is
a Daily Scrum of Scrums meeting where representatives of
each team can align their issues and objectives.
© 2015 ZS Associates
|
CONFIDENTIAL
− 41 −
PMI Presentation 02
© 2015 ZS Associates
|
CONFIDENTIAL
− 42 −
PMI Presentation 02
Agile as a Disrupter
 Scrum of Scrums
 LeSS
 SAFe
 Planning
 Budgeting
 Auditing
 Contracts
© 2015 ZS Associates
|
CONFIDENTIAL
− 43 −
PMI Presentation 02
Agile Across Multiple Projects
 #1. LeSS – Large Scale Scrum
o Less formal than SAFe (the alternative)
o Built on Scrum teams: self-managing, cross functional, co-located and
long lived
o Product Owner sits at the top of the pyramid
o LeSS - minimum organization group for 8 or fewer Scrum teams
• Product Group – implement all at one time
o “LeSS Huge” for over 8 teams – implement gradually
• Create Requirements Areas
• Each Requirements Area has one Product Owner
• Each Requirements Area has 4-8 teams
© 2015 ZS Associates
|
CONFIDENTIAL
− 44 −
PMI Presentation 02
© 2015 ZS Associates
|
CONFIDENTIAL
− 45 −
PMI Presentation 02
Agile as a Disrupter
 Scrum of Scrums
 Large Scale Scrum (LeSS)
 Scaled Agile Framework (SAFe)
 Planning
 Budgeting
 Auditing
 Contracts
© 2015 ZS Associates
|
CONFIDENTIAL
− 46 −
PMI Presentation 02
Scaled Agile Framework (SAFe) Embraces Lean-Agile Values
House of Lean
We are uncovering better ways of developing software by doing it and
helping others do it. Through this work we have come to value:
Relentless
improvement
Innovation
Flow
Respect for
people and culture
VALUE
Agile Manifesto
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
LEADERSHIP
Responding to change over following a plan
Value in the sustainably
shortest lead time
© 2015 ZS Associates
|
CONFIDENTIAL
That is, while there is value in the items on the
right, we value the items on the left more.
− 47 −
PMI Presentation 02
Three-level SAFe 4.0
Expand
one level
© 2015 ZS Associates
|
CONFIDENTIAL
− 48 −
PMI Presentation 02
Nothing beats an Agile Team
 Cross-functional, self-organizing entities that can define, build and test a
thing of value
 Applies basic scientific practice: Plan—Do—Check—Adjust
 Delivers value every two weeks
Plan
Team
1
Do
PDCA
Team
n
© 2015 ZS Associates
|
Adjust
CONFIDENTIAL
− 49 −
Check
PMI Presentation 02
Except a Team of Agile Teams
 Align 50-125 practitioners to a common mission
 Apply cadence and synchronization, Program Increments every 6-12 weeks
 Provide Vision, Roadmap, architectural guidance
© 2015 ZS Associates
|
CONFIDENTIAL
P
D
A
C
− 50 −
PMI Presentation 02
With some Architectural Runway
Architectural Runway—existing code, hardware components, etc. that
technically enable near-term business features
Feature
Feature
 Enablers build up the runway
 Features consume it
Feature
 Architectural Runway must be continuously maintained
Implemented now …
Enabler
… to support
future features
 Enablers extend the runway
Architectural Runway
© 2015 ZS Associates
|
CONFIDENTIAL
− 51 −
PMI Presentation 02
The ART takes a systems view
Business
Product
Mgmt
Arch/
Sys Eng.
Program
Hardware Software
Testing Deployment
AGILE RELEASE TRAIN
© 2015 ZS Associates
|
CONFIDENTIAL
− 52 −
PMI Presentation 02
The Challenge
Corporate planning, budgeting, auditing,
and contracting are designed to work with
Waterfall – not Agile – but there are
solutions
© 2015 ZS Associates
|
CONFIDENTIAL
− 53 −
PMI Presentation 02
Agile as a Disrupter
 Scrum of Scrums
 Large Scale Scrum (LeSS)
 Scaled Agile Framework (SAFe)
 Planning
 Budgeting
 Auditing
 Contracts
© 2015 ZS Associates
|
CONFIDENTIAL
− 54 −
PMI Presentation 02
Organizational Planning in an Agile Environment
 Three Values of Agile
o Responding to change over following a set plan
o Ideas and innovation over a hitting fixed targets
o Dynamic utilization of funds over frozen fund allocation
 Stopgap measures
o Rolling budgets and rolling forecasts
o Flexible budgets
o Balanced goals (including innovation)
 Goals
o Corporate planning needs to be at the Value Stream level
o Reduce Work In Progress (WIP)
© 2015 ZS Associates
|
CONFIDENTIAL
− 55 −
PMI Presentation 02
Agile as a Disrupter
 Scrum of Scrums
 Large Scale Scrum (LeSS)
 Scaled Agile Framework (SAFe)
 Planning
 Budgeting
 Auditing
 Contracts
© 2015 ZS Associates
|
CONFIDENTIAL
− 56 −
PMI Presentation 02
Organizational Budgeting in an Agile Environment
 Budgeting paradigm must shift
o A budget (at a low organizational level) can become a committed plan
o Budgeting should be about making investment decisions
o Venture capital style budgeting can fund Minimally Viable Products (MVP)
 Budget at a higher level: budget at the Value Stream level. That is at
the product domain
o Ongoing funding by Value Stream
o Funding by Product Roadmap
 Organize for higher level budgeting
o Development Council to make Go/No Go decisions at Value Stream level
o Chief Product Owners charged with tactical allocation of funds
o Product Owners responsible for managing Sprints
© 2015 ZS Associates
|
CONFIDENTIAL
− 57 −
PMI Presentation 02
Agile as a Disrupter
 Scrum of Scrums
 Large Scale Scrum (LeSS)
 Scaled Agile Framework (SAFe)
 Planning
 Budgeting
 Auditing
 Contracts
© 2015 ZS Associates
|
CONFIDENTIAL
− 58 −
PMI Presentation 02
Auditing Agile Projects
 A senior finance systems manger observed in an article in the ISACA
Journal that he does not have to audit less on Agile projects, but just
differently.
o Extensive documentation at the project beginning can be counterintuitive
when solutions change as requirements become better defined (spending
time on something that will change)
Agile has better transparency because false documentation does not
cover up the real requirements
User stories allow for active updating of requirements (grooming) with
auditor participation
Acceptance criteria (DONE) force the reduction of the size of user stories
for clarity
User story scenarios can uncover gold plating
By participating in the Scrum team, auditors can add stories that provide
additional system review
o
o
o
o
o
© 2015 ZS Associates
|
CONFIDENTIAL
− 59 −
PMI Presentation 02
Auditing Agile Projects
 Auditors need to adopt the way they perform audits




o Ask for system log of executable specifications
o See a more complete picture of user roles from user stories
Consider abuse scenarios in user stories – build in rather than create a
post development tests
Use the Product Owner to champion compliance objectives
Auditors can audit development teams on how well they do Agile –
artifacts and ceremonies - which result in desired outcomes
Outcome based approach rather than signoff based approach can
focus review on “fit for use”
© 2015 ZS Associates
|
CONFIDENTIAL
− 60 −
PMI Presentation 02
Agile as a Disrupter
 Scrum of Scrums
 Large Scale Scrum (LeSS)
 Scaled Agile Framework (SAFe)
 Planning
 Budgeting
 Auditing
 Contracts
© 2015 ZS Associates
|
CONFIDENTIAL
− 61 −
PMI Presentation 02
Agile Contracts
 Third value of the Agile Manifesto is “customer collaboration over
contract negotiation”
 A software project is not similar to a construction project (predictable)
 Lawyers should learn Agile methodology to better serve their clients
 Agile is NOT a zero sum game
 Contracts that mandate or promote sequential life cycle development
increase project risk
 Avoid mandating change management boards
© 2015 ZS Associates
|
CONFIDENTIAL
− 62 −
PMI Presentation 02
Agile Contracts
 Story Points
o Not a value measure
o Relative effort concept
o Have no independent meaning
 Agile projects require a high level of participation by the client and this
should be called out in planning and in the contract
 Agile projects work best based on TRUST so build this as quickly as
possible
© 2015 ZS Associates
|
CONFIDENTIAL
− 63 −
PMI Presentation 02
Agile Contracts
 Waterfall
o Early specific requirement lists often backfire
o Assumes the buyer knows exactly what she wants at the beginning
 To have a Fixed Price Contract you need a Fixed Scope
o Lack of trust between parties
o Lack of understanding how software development works
o Misunderstanding what scope means
 Wrong Assumptions
o The more detail in the up front scope, the better we understand each other
o Well-defined scope prevents changes
o Fixed scope is needed to fix price and time
© 2015 ZS Associates
|
CONFIDENTIAL
− 64 −
PMI Presentation 02
Organizational Agile Contracts
 While Agile can succeed with any type of contract, favorable contract
types are:
o Capped T&M Contract
• Limits the risk of the Buyer at some point
o Incremental Delivery Contract
• Structured with regular inspection points (Sprint Reviews) where the
buyer can make a Go/No Go decision and the buyer still has a product
o Cost Targeted Contract
• Buyer and Seller determine a realistic final price and both the Buyer
and the Seller share in any savings or overage
o Progressive Contracts
• No scope defined beyond one iteration
© 2015 ZS Associates
|
CONFIDENTIAL
− 65 −
PMI Presentation 02
CONCUSION
 Agile is FUN
 Agile can be scaled through the entire organization
 Implementing Agile requires changes in how the organization operates.
Not so Agile will work, but so the organization can take full advantage
of Agile – especially to achieve productivity gains and reduced delivery
time to market
© 2015 ZS Associates
|
CONFIDENTIAL
− 66 −
PMI Presentation 02